phoned report of a security incident according to sources. sounds like somebody phoned it in. >> that's according to abc not a fox source. thanks so much. our continuing coverage will continue with america's "newsroom." thanks for listening. thanks for watching. bill: breaking news on a story we are trying to figure out. a washington navy yard was on lockdown. huge police presence flooding that scene. a scene where a massacre took place two years ago. so be patient with us as we try to work this out. martha: navy officials originally said that a shelter in place order was in place.

the s.w.a.t. team and just about everything they had converged on the area. there is generally a heightened alert everywhere at this point. bill: all the warnings we have been hearing about the last few weeks. jennifer griffin is at the pentagon. peter doocy moved near the navy yard from the white house. peter, what's going on right now? >> reporter: we haven't seen any kind after drawing down in the police presence. it seems like everything has been steady. it looks like they called everybody who was around from all these agencies and told hem to come down here. we have seen people in shorts and flip-flops putting on vests and putting on big guns out of their trunks. we saw a caravan of f.b.i.

agents wearing camouflage, some of them in what obviously turned out to be undercover vehicles. they were somewhere else and now they are here. just like -- i just spoke to somebody who works inside. they say it is unfolding. the last time there was that bloodbath inside. this is unfolding the same exact way. the park police launched a helicopter and you can see building 7. they launched just across the river to the navy yard which is a 15 minute walk from the capitol. we see one park police helicopter another helicopter flying higher and way up, way way up we see flying in slow

circles a fixed wing surveillance plane. it's difficult to tell which agency but slow circles taking aim trying to figure out ways going on here. we are not getting have much information, but it is erie, it's almost a feeling of deja vu. the last time we came down it was difficult to figure out what was going on. because everybody sheltered in place and locked down so well, the stormy developed and took a tragic turn. we hope that's not the case this time. but it's unfoldinged the same way. they keep us back. we see people from every agency. all kinds of vehicles and people heading down. lots of sirens and lots of lights and lots of air traffic. but we don't know what's going on inside. until we do we expect to see

more people. bill: just watching the u.s. navy twitter feed that sent out an alert the lockdown remains more to follow. a lockdown, a stay in place is still in effect for the moment. correct? >> reporter: that's correct. we have heard these reports that everybody basically knew exactly what to do because they train very well for these active shooter incidents in this building which is where the last incident took place. it was closed, then renovated then just reopened this year. so everybody knows the drill they know what to do when these reports come in. the hope would be that reduces any potential casualities or injuries. but we don't have any indication

based on what we have seen or heard that people have been given any instruction other than what they have seen or heard. something we have not seen that we saw two years ago when things were urn folding rapidly is the police in 2013 put a big vehicle here and they were piping instructions over the brick wall with allowed speaker. we have not seen flat our position here at 7th and m. just about a 15-minute walk from the united states capitol where all this is happening right now. we have not seen the instructions where they were telling people shelter in place until there were further instructions. but they got the word through other means. bill: washington, d.c. fire department not confirming shots were fired not confirming any

injuries. martha: this comes nearly two years after a deadly malls shooting at the washington navy yard. in 2013, a navy contract employee opened fire. he killed a dozen u.s. navy civilian employees. the gunman's name was barrel alexis. police say he those was being controlled by low-frequency electronic waves. it's been a confusing morning. the lockdown is still in place so we don't know yet. >> reporter: u.s. navy officials we have spoken to are baffled by this morning's

incident. they can confirm a lockdown was put into place. a shelter in place order was given this morning. but as of now there is no confirmation from u.s. navy officials that any shooting took place. they cannot confirm there was a shooting. the fire department in washington d.c. says they have no evidence of any casualties at this point in time. a source of mine in law enforce -- suggests that they have gone through the first floor of building 197. they cleared that floor. they have have not found anything so far. witnesses have been describing how they were told quickly out of the cafeteria. they ducked down and filed out of building 197 when the shelter in place and lockdown order was given. there was mass chaos down at the facility. it's hard to say whether that was the result of people being so on evening because of the

shooting two years ago. the building just opened in february after a $4.6 million renovation. this facet is the -- this facility is the brains of the u.s. navy. it's where they design the future weapons systems of the navy. there are civilians that work there, and the jag officer corps is based there. this is a facility that's been on edge. if you look back to a week ago when dhs and the f.b.i. put out an alert telling law enforcement to be ready on an attack on the july 4 weekend all of this indicates how alert and ready they were. no signs of an active shooter. there were reports of the shooter, that's what spurred this at this point in time.

martha: we are cautious at this point. we can't say this is over. you see the enormous response and how quickly the word got out there was something going on here. it begs the question what started all this? something real or something that somebody jumped the gun on. that's what we'll try to unrasm as we go through the course of things this morning. bill: the navy yard in washington d.c. is currently on lockdown with orders to shelter in place. it is a simple straightforward statement that we are watching. want to bring in ted williams, former washington d.c. detective. give me a sense of washington, d.c. over the past couple days. it seems like every lawmaker connected with homeland security has been on the radio that the 4th of july weekend is

something we need to watch. with the heightened state of alert to be vigilant. if you see something say something. knowing that headline has been out there for a solid week. where does that leave us watching this now? >> it leaves government employees in a heighten state of alert. as you said, bill, and you should note, there is a great deal of confusion going on at the navy yard. we heard word there was in fact a shooter but now that may not very well be the case. but out of an abundance of caution because you have numerous building in the navy yard all of those buildings have to be checked while we have this amount of confusion. one of my greatest concerns, bill is all of the energy being

placed or focus shall we say on the navy yard and something else that happened in washington d.c. we have to believe that isis terrorists or anyone associated with terrorism is watching this. so there is this great deal of confusion. but we don't know what is going on. bill: it seems like every officer in the district is there. have you seen the massive police response ted? >> bill, i have seen this, it certainly is deja vu when you look at what happened with aaron alex whyalexis in 2013. they have tightened up security at the navy yard. if you are not in law enforcement and can't be

identified you can't bring firearms on the navy yard. but that's not to say thing can't happen. bill: we saw it in forward hood in texas. they had the same rules in 2009, november of that year. ted williams, homicide detective, washington d.c. martha: the facility just reopened after a massive renovation after the 2013 gunman killed 12 people in the exact same building. the question is what is going on at the navy yard this morning. peter king will join us next.

bill: there is a lockdown in place at the u.s. navy yard in washington d.c. no solid reporting of that just yet. no confirmation of that. but the massive police presence left questions as to what's going on inside. congressman king, the chairman of the subcommittee. good morning to you. you have been watching and listening. share some insight if you can. is this about nothing or is there something to it? >> it could be nothing or part

of something. or this could be a called in phoney hoax. you saw over memorial day weekend there was a number of airline hoaxes called in. in new york they have a large number of hoaxes at the port authority. it could also be a diversion. get all the law enforcement forces in one location and attack somewhere else or it could be nothing at all. that's what faces law enforcement and intelligence officials. get all the law enforcement to one location, but you can't overlook anything. bill: no one has said they heard shots fired. >> was it part after coordinated policy? i can assure you the law

enforcement in d.c. are evaluating. bill: someone at the navy yard was reported lire seeing one white male and one black male who looked suspicious. either way are we becoming paranoid? >> any time you have a heightened state of alert you have people reacting and that's a problem that faces police every day. when there is a major crime you have people reporting things they thought they saw and didn't see. these things are never as simple as they appear. yesterday in new york the deputy commissioner john miller said york is right now run can the highest counter-terrorism program probably in history as a result of different intelligence reports they receive regarding the 4th of july. so it's always that balance. you have to be prepared, take

extra measures, but you have to have cool head prevailing. that's hopefully what's going to happen. i wouldn't be surprised to see overreactions. at the same time it could be very well part after coordinated plot. that's the mystery that law enforcement always has to solve. bill: our viewers listen to the word you say. you say this is more than just the usual 4th of july. i would say it's the most intense level of concern i have seen maybe since 9/11. why? >> based on reports which the f.b.i. and intelligence people received going back self weeks ago, we have been briefed on it going back several weeks. in the last week to 10 days you had five alleged isis operatives arrested.

you had nine arrested this month alone. you wouldn't see the nypd which has been through it all react can the way they are if they didn't think it was real. long before any of this was made public there will be were intense discussions and investigations going on in washington. and throughout the country. this is not something that's been hyped the last minute. it's been looked at with a great degree of concern. more than i have seen in the last 14 years. bill: separately from what we are watching on screen. isis sends out 90,000 to 100,000 messages a day on social media. mike mccaul told us yesterday that there are messages from isis and syria into the i.s. every single day through social

media they can track because they are trying to reach people and get them to act. based on the information you know about that, how do we stop it? >> you try to monitor and filter out. you can't be tracking down all 90,000. you try to set up a hierarchy of importance. also that's what attracts -- 99% of them are aimed at the lone wolf but there are a large percent and be going to isis operatives to carry out coordinated attacks. there will be the lone wolf and there could be the coordinated. that's why this is so difficult. bill: we have to move as quickly as they do. peter king, thank you for your

time. martha: clearly a nation on edge. we are watching that play out just blocks from the capitol and white house. we'll be right back.

martha: we are back with breaking news coverage of what happened or has not happened at the navy yard in washington, d.c. it's an interesting story unfolding here. we are getting some reports that the d.c. police chief has reported to other outlets that there has been nothing found so far. the latest we are hearing from the navy is that the lockdown and the clearing of the floors of this building remains in place as the f.b.i. continues to sweep that building. we saw a huge presence of every

law enforcement agency in washington d.c. swarm on to this site after 8-01 this morning. a phone call was made that claimed they were seeing two suspicious men in that building and that appears to be what triggered this incredible outpouring of reaction this morning. obviously as we head into the 4th of july weekend and you think about the story ofs we have covered over the course of this week. the concern that's omnipresent in all of the halls and law enforcement in this agency. mike said secede he wouldn't be surprised if he was sitting there a week later talking about what had happened. bill: james rosen is work an iran nuclear story out of austria. he said department of homeland

security. no shooter found. reports of active shooter. department of homeland security and law enforce p. on the scene have not confirmed the presence of an active shooter. occupants have been asked to shelter in place. the shelter in place is still active. so for the hundreds or thousands of workers who have already been on the job today they are not moving. and they are told to stay where they are. give the way it was just about two years ago when aaron alexis who had access in the navy yard shot and killed 12 people. martha: they just recently reopened this building after the multi million dollar renovation that took place on it. everybody who was affected by that original shooting, the

memory of that is quite clear. let's bring in bill daly. this is an odd situation. what do you make of this? >> we hope perhaps it was someone heard something and thn they respond -- and they responded quickly without verifying it. that would be the best case scenario. but we are concerned perhaps there is somebody in there who may be hiding in a room, that they have have taken people. we don't know if that's the case. laugh enforcement needs to go methodically through the facility. one thing they have working in their favor they have had extensive closed circuit cameras. so for law enforcement to get into the command and control area to see the cameras and see what happened in the hallways

and throughout the facility will be a great help to them in determining whether there is a short or whether it was someone being cautious and making an announcement premature. martha: we remember seeing aaron alexis as he walked through that building. it was chilling. one thing that occurred to you as you watch this. is it some sort of drill is it a run-through is there something somewhere else in the city going on. >> that's something we talk about that someone who wants to

carry out a terrorist incident where they draw away first responders. throughout the capitol and various places where the public may be gathering and those times of situations, they are cautious what's happening and precluding those activities until they understand what the dimensions of this are and if there is a broader concern. it's a runup to the 4th of july weekend. we have seen people they identified as being sympathetic or involved in activities supporting isis. so all these concerns run through every one's heads. not just two years ago they are doing drills. i understand there was a drill in the facility that's been affected. so people are on a high state of

alert and i think we should be prepared. martha: the american people told us the threat is higher than it has ever been and that's a frightening thought. it's no surprise people kick in quickly when something suspicious is found. bill: a lot of viewers contacting us. whether you are at home or on the job suggesting it might be a false alarm and maybe it is. it could be a diversion. peter king suggested that. the fact of the matter is, when you have a police response like this in our nation's capital you can't ignore the story. we'll be back to tell what you we think we know for the moment. ♪

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bill: it's 9:34 in washington d.c. peter doocy is telling us what he knows based on what he has seen at the scene. local reports in washington that perhaps an employee heard a loud sound and reacted in a way that suggested they were concerned about what was going on man the end perhaps this is nothing. based on the facts that you have what's going on there inside the navy yard? >> really the only facts that we have are what we can see from here just a block or two away from the entrance to the navy yard. amid these reports that it could be a false alarm we have seen some of the heavily armed tactical officers pulling back or at least going back to their cars. but we haven't seen have many people leaving. there is still a lot of air

traffic. it seems like another helicopter just arrived. i count three helicopters and one surveillance aircraft doing tight circles around this general area. we don't know what is being found and what is not being found as these s.w.a.t. officers go room to room in that building. but outside their brothers in law enforcement are still here. there is still a sense of uncertainty, not necessarily the urgency there was when we first got here. but they obviously are not ruling anything out because they are all still here. so we are waiting, we are trying to convince the public information officer here to give us an con-camera briefing any minute now. bill: is that briefing set up?

are there microphones there? >> reporter: it seems like it could happen in the next few minutes. everybody is here. i think the public information officer is waiting to get pane update from inside. bill: u.s. navy quoted, no incident can be confirmed as of yet. the lockdown with orders to shelter in place stand for the moment. correct? >> reporter: correct. that's consistent with what we see. we haven't seen anybody going in except for law enforcement and we haven't seen anybody coming out except for law enforcement. people hop have been in there have not been leaving for any reason and people showing up for work have not been able to get into the entire complex. the entire complex is sealed off from here. all the way down to second and m. bill: peter doocy is live on scene there. in the meantime, there is a lot of other big news today and

we'll move to that for the moment here. martha: this story at the navy yard from our capitol hill producer. he says he can confirm police are interviewing the source of the original navy yard phone call. it appears this person was present during the 2013 navy yard shooting and was alerted to sudden loud noises. some more clarity coming through and we'll continue to stay on that. there is more going on this morning. we want to make sure we get that to you as well. a dangerous and toxic train fire happened in eastern tennessee that forced 5,000 people to leave their homes and evacuate. a csx train broken axle. released a highly flammable and toxic gas into that surrounding

area which is a horrible situation. john rob earth is reporting on that you live from atlanta today. >> reporter: this did happen in marysville. tennessee, the closest big town knoxville. csx rail says this train originated in cincinnati. it was head for waycross, georgia. it has a highly toxic chemical that's used in plastics. according to the sheriff's office an axle broke. the break punctured the tank and sparks ignited that highly flammable fluid. because of the nature of the chemical which turned into hydrogen cyanide when burned,

that's what they use in executions police and fire department went door to door telling people to stay with friend or relatives or go to a local shopping mall oral high school for shelter. 5,000 people have been moved out of the area. >> the fireman came up to the door and started knock on it and woke me and my dog up. he told us a train wrecked and to evacuate. >> reporter: the sheriff's office says first responders staying back from the accident letting the fire burn itself out. the concern is there are two tank cars on either side of the burning car so there is a worry those could catch fire as well. the evacuations are expected to last 24-48 hours. the 10 marysville privilege had to be treated for inhalation injuries. they got there before they knew what they were dealing with.

bill: we are learning there could be a briefing any moment at the u.s. navy yard. officials are apparently setting up microphones and the indications are the wade metro police department may hold a briefing any moment. that could clarify a lot of what we have been watching and waiting for the past few hours. we'll figure out what's happening in the navy yard for you. >> reporter: president obama talking up this diplomatic outreach to cuba. if you thought cuban americans were supporting the moves you may have been a bit wrong. >> reporter: the senate will not confirm an ambassador to cuba nor will congress allow for the funding.

martha: this morning at 8:01

there began a huge police presence. apparently somebody called in a concern they thought was a shooting and was a loud noise. that was the early parts and pieces of what we are putting together here to figure out what happened. the unbelievable onslaught of law enforcement all over that scene. then they went through the building 197 the same building where aaron alexis was killed. was under lockdown once again. it remains so. the reports are they are still clearing. but you can tell a lot from the posture of law enforcement around the edges of this scene where some of them have started to pull away. we are starting to see a calmer scene though one that is a bit of a concern in the middle of washington. it raises questions about how on edge this nation is right now with a loud noise may have prompted all of what we saw this morning. we continue to watch all of this

as everybody is on a heightened alert. there is good news in that you see a very swift reaction. but it also just raises questions about how nervous a nation we are right now. there is a police conference coming up. we'll of course take there live. bill: there were local reports out of washington that they heard a loud bang. so we'll see what comes of that. put that on standby. let's move to cuba, havana and u.s. relations going forward. >> i can announce the united states has agreed to formally reestablish diplomatic relations with the republic of cuba. bill: there is new fallout on the push to reestablish

relations with cuba. good morning to you. i heard your comments last night. congress has a roll in this relationship. josh earnest says there is bipartisan support to move forward. >> none of what the president is doing is going to indicter one. we are not going to appropriate one penny for this new embassy. nor is the not going to con summer the new ambassador. why? because this president is just going legacy shopping. he's saying okay, iran, check that off the list. even though it will be a weak deal. cuba diplomatic relations check that off the list. even though there is more harassment and arrests in cuba than ever since his announcement. the next one is israel. the reality is that cuba

continues to arrest and harass people all the time. and fugitives from u.s. law have been speaking and have gotten refuge in cuba by the dozens and dozens including a cop killer. and also u.s. property owners have lost all of their life savings in the property castro illegally confiscated. terrorists are there in cuba. he won't bring them to justice in the united states. u.s. property owners are out millions of dollars and castro is not doing anything to reimburse us. bill: there has been an embargo for 54 years and congress has the authority whether to lift that embargo. bust administration could -- could slowly chip away at this relationship. >> there will definitely be an

embassy in cuba, an american in cuba. here is the thing. it's like that old child's tale the emperor has no clothes. who is going to be the one to say, hey the guy is naked. the reality is it's the same building. you just put a different shingle on it, instead of saying u.s. intersection it will say u.s. each bassy. what will have changed? nada. you will still have the head of the interests section we call him the chief. but instead of calling him the chief he will be called the ambassador. but will he have credentials received give the senate? no. bill: dr. manny alvarez also born in cuba. he works on our staff at fox news and you know him. he said something has got to change. we have been at this policy for some time. let's move forward somehow.

what do you think about that. >> i understand that. every other country have been wheeling and dealing and visiting the great beaches of cuba for all of those years. they have have been in true engagement in cuba and nothing has changed in cuba. it won't be the united states that will make cuba change. cuba has to change from within. the castro brothers have to go. we want freedom and human rights respected. this president is not going to get them to this point. martha: we are waiting for a news conference by the police outside of the navy yard where there is a strong presence. but it seems to be a cool off. reports are coming in from peter barns saying all of the tourist sites in the area are open. streets are flowing with people. as soon as that news conference

gets underway we'll take you there to try to get a handle on any information we can bring you on that. also a settlement. the biggest settlement in history.

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bill: what happened inside the u.s. navy yard in washington, d.c. that led to a massive response. we are being told they are breaking down the scene. ' one line, is it over? we wait await a news conference on that. martha: they will explain how this started. the early indication is somebody made a phone call after hearing

a loud boom. obviously everybody is on it as we head into this 4th of july weekend. '. and that's seems to have conspired to set this off today. you can clearly tell from the posture of these gentlemen and the people we have seen that the panic appears to be over in this building and it appears they are done clearing it. we are being a little bit tawtion as it does appear they are moving out and feeling there is nothing to be concerned about here. we are going to bring you that here live. >> reporter: no injuries have been reported. no gunshots have been reported either. there have been no eyewitnesses. in part possibly because the navy yard is still on lockdown. it's massive. if you look at that building 197 in the upper right behind corner of your screen. that's where 22 months ago the

gunman went in and killed 12 people. so 13 dead that day. the report suggests at 8:00 this morning someone heard some sort of sound inside that same building which led everybody to this point right now that has police setting up a microphone to tell us what's up. martha: if nothing else it was a massive exercise in how to mobilize and how things stands in terms reacting to any situation like this. the reaction was full force, you had the f.b.i. on scene u.s. marshals secret service. and you know there was a ripple effect felt across the capitol hill area and the white house whether they have should be in a similar posture. so a very interesting morning and we wait for more information to come from police on the scene there. bill: not to discard the

reactions of people who work there. navy security suave surveillance video of two people jump' knowledge the fence near that building. that's been reported. back in a moment. and you can enjoy every single bite. eat loud, live loud, super poligrip. super poligrip holds your dentures tightly in place so you never have to hold back. laugh loud, live loud, super poligrip. let's celebrate these moments... this woman... this cancer patient... christine... living her life... loving her family. moments made possible in part by the breakthrough science of advanced genomic testing. after christine exhausted the standard treatment options for her disease, doctors working with the center for advanced individual medicine at

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martha: all right. we are back. right now we're waiting for an update on the breaking news we've been covering for you this morning. there is the scene. that says a lot. there is huge police presence and emergency response presence as well that gathered this morning at the navy yard in washington, d.c. you can see reporters gathered there as well. we expect we'll get a news conference from the police chief in washington and that should get underway shortly. lots of reports out there this is nothing. there was no shooter. the building has been cleared. that the police are pulling out of there. which raises a lot of questions about what happened. there are indications there was a phone call made after a loud noise was heard. that seems to all be adding up to people on edge essentially.

and for two reasons at this particular building. one is that it happened there before in 2013. and that the indications is that the person who made this phone call was there in 2013. and jumped the gun and called the police. the other indication of nervousness comes from the fact we're heading into the 4th of july weekend. we've been told from people on homeland security committee, former head of cia, a number of high level officials they're very concerned about this 4th of july weekend. all of that adds up to what we've seen play out here this morning in washington, d.c. a lot of nerves on edge. a lot of people kicking into high gear very quickly. whether or not that was valuable experience in the end perhaps. we await to hear from the police chief in a few moments. that is where we are with that. bill: welcome to hour number two of "america's newsroom." i'm bill hemmer along with martha mack. we can confirm they're breaking down at the scene. team fox coverage. peter doocy, catherine herridge at the scene.

tell us what you're seeing from your location, peter. >> reporter: m street behind me in southeast washington it is completely logged jam with marked cars with lights and sirens still flashing and unmarked cars part of a massive response that showed up here two hours ago. still those reports of no victims are consistent with what we've seen. there was an ambulance idling back here with us, with the press gathered here and it slowly went somewhere else. looked like they were got another call and they were given okay to get out. that is a good sign. they went that way. they did not go that way. a lot of air traffic we can still hear at least one helicopter. we're not seeing low-flying helicopters patrolling around with their lights pointed to the ground on what is very cloudy morning here in washington d.c. just a few minutes away from the u.s. capitol. if they were looking for

somebody if they were looking for people consistent with these reports they're not right now. bill: peter, we are confirming as well the all-clear has been given. i imagine looking at email you're getting as well. you're reading same thing we are that went out 90 seconds ago. that the police cars behind you will be in retreat very soon? >> reporter: yeah we've seen some of the officers, u.s. marshals, taking their vests off, putting in trunks of cars, very slowly leaving. not everybody is leaving right away. there is no sense of urgency to get inside if people are walking out this way, coming out to the corner 2 1/2 blocks away. we only know what we've been able to see from the sky and here on the street. there is this tall, 10-foot brick wall that lines m street and completely obstructs the view into the washington navy

yard. we can see part, if you walk down the street with different angle and i believe we had a different camera on it earlier, you can see building 197 from the street. that is where the tactical units were going room to room to confirm if anybody had a gun or anybody was shot. we're told that they haven't found anybody shot or anybody with a gun but beyond that we don't know a whole lot of went wept on in there except what we've seen from the street except the police premise, that was identical to the what happened in 2013. low flying helicopters rescued people off the roof. police, fbi and a the press. it was a day a lot like this, steamy and cloudy. obviously not exactly like two years ago in the end because no reports of injuries. that is a very good thing, bill. bill: no question. peter, we'll keep you camp you

had out there until we get the others in front of the microphone. this is nervous nation. obviously the other side wins when you see responses like this. martha. martha: catherine herridge has more on the person initially made the phone call and how all this started today. catherine what have you learned? >> reporter: well, martha within the last half hour fox news has confirmed the person who made the original 911 call is now being questioned, being interviewed by investigators. really what we have here this morning has been highly fluid for the last few hours and complex because we've had the convergence of three significant factors. one is this memory of 2013 and the 12 people who were killed here at the navy yard. the second is this heightened threat environment leading into the july 4th holiday weekend this is described by fox news as one of the most severe threat periods we've seen in the last decade. this phone call this morning,

reports of shots fired. to emphasize sources are telling us this is all clear. we're expecting a comment from the d.c. police chief shortly and there is no evidence that shots were fired or anyone was injured. i would emphasize for some context today they deployed something called the national capital response squad. this is a kind of a response squad that kicks into high gear when they believe there is some kind of a terrorism-related or perceived terrorism-related incident. there is no evidence of that but it tells you this is part of the height inched threat posture. when they had this 911 call, reporting shots fired, that they took the worst-case scenario and they deployed as required martha. martha: a lot of initial concerns that maybe this was some sort of a decoy. that this was some sort of an exercise to watch that kind of response. we don't have any indication that is what is at work here. i guess they will continue to talk to the person that made the

phone call to make sure there is nothing more there. but essentially where do we go from here with all this, catherine? >> i think there are three sort of threads to follow here martha. first and foremost it is going to be the news conference from the d.c. police chief. what kind of readout we get of interview with the person who made that initial 911 call. whether this was just well-intentioned but human error. if you're going to step back here though the question that investigators always have is whether this was some kind of a probing incident or a dry run to see how d.c. emergency personnel respond to a situation like this. even if that is not the case and i'm not suggesting there is evidence that it is, if you are someone who wishes to do harm during this holiday weekend what you've been able to see this morning is how this response would unfold if there was an active shooting incident in southeast washington. so those are sort of the three main things to look at here this

morning, martha. martha: catherine, their very much. -- thank you very much. >> reporter: you're welcome. bill: if you go back over the past 30 days, not even 30 days in washington d.c., lucas tomlinson works with our d.c. bureau and this is what we can recount. you have got the situation at the navy yard, right, back on july 2nd? white house press briefing room was interrupted due to a bomb threat. they evacuated there was nothing. same day june 9th capitol hill complex evacuated after bomb threat called there. nothing. they also found nothing hazard does in two senate office buildings after investigating suspicious packages and bomb threat call to the police. that is all past 30 days or less. we're watching this an all-clear has been given. more on this eight minutes past the hour in "america's newsroom." we'll trying to figure out what happened in the navy yard. don't move. there is a lot of breaking news

a town in tennessee where 5,000 people were told to evacuate and you have the single largest sell meant in u.s. history that has just been agreed to. we're on those stories and more right after this. martha: we'll be right back.

bill: we are awaiting an update from navy officials in washington. the all-clear last been given at the navy yard in washington, d.c. a person made a 911 call

just about two hours ago. we're told the person was present for deadly shooting almost two years ago that was september 2013. apparently heard some sudden len loud noises. when we get the statement we'll bring that to you in front of the microphones in washington. meantime here in new york martha has more. martha: developments in the navy yard let's bring in former new york city mayor rudy giuliani. >> nice to be with you, martha. martha: looks like at least at first blush appears to be person who was on edge, jumped gun, heard a loud noise and the response was phenomenal this morning. what do we learn from all of this? >> first of all i was at the navy yard a year ago and spent the day inspecting it and making recommendations about security. security is fabulous at the navy yard. triple redundancy to get in. couple other things i can't mention. i said when i heard this is not true or inside job, somebody that has access. martha: right. >> having spent that much time

with the navy people are on edge. why wouldn't you be? it was only year ago year-and-a-half ago why this happened. i could see why a person hearing a loud noise would call them in. rather have them do that than ignored and it was a shooting. some response people say it was overresponse. it was not. exactly the response there should be if there was a shooting. this person sounds like an innocent person could some of these people calling in be doing it to test us? that's a possibility. and are we under real threat? we would have to be foolish we're not under real threat with everything we're hearing from cia, federal government new york city. if you look around new york city, which i know that kelly response that he set up and what bratton has done, they are on the kind of alert we used to be on new year's he eve remember in '00 we had threat of a terrorist attack. there were massive number of

police in a lot of hidden places. >> concern about this, what you mentioned is somebody testing the system? or is somebody intentionally making these phone calls? we saw something similar in the white house when they evacuated the briefing room and capitol hill and navy yard and the white house all which we watch be tested over the last month or so. either somebody doing that intentionally or if not, giving a nice blueprint for what reaction looks like for anybody that wants to do us harm, right? >> it is hard to say. this one from what little bit we know doesn't sound like intentional that almost a mistake. almost understandable mistake, if the facts turn out to be heard a noise, called. others i can't tell you. isis wants to attack the united states. they have announced it. they said it. we do not have information about a specific attack meaning attack on new york, attack on boston attack on chicago.

it does appear we have information that they are specifically going to attack the united states. you can see that in all the preparations we're making. i think that americans should go about their lives the way we normally would because chances you're going to be the one are less than about 10 other ways you can do. martha: doesn't this give them any scenario, gives them very good indication what they should expect. >> yes. martha: here is what happens. they can watch the police presence, see how it gathers, can learn a lot from this. >> absolutely and they will. there is no question that those videotapes will be sitting somewhere in yemen and afghanistan. people will be going over them. these people are highly-skilled at what they do. martha: you know when you see what happened in tunisia on the beach, and you have british tourist german tourists monk those who were slaughtered by a guy who walked up the beach in shorts and a black shirt with an

ak-47, or whatever rifle, i'm not sure if that was the exact machinery he was using it could happen anywhere, anywhere. >> it could happen anywhere. the only thing i can say that gives any comfort at all is the police and the fbi gather intelligence much better than at the did before september 11th. they share it much more than they used to and we have stopped a lot of attacks, meaning, the u.s. stopped a lot of attacks. as president bush always said and president obama you never are going to be right 100% the time no matter how good our response. so we have to assume, pray to god it is not a big one something is going to happen here. which means we should be more engaged in taking isis out. martha: that is exactly right. >> we should have been doing it, we should have been doing it three years ago when john mccain and lindsey graham wanted the president to put troops in syria and cut this thing off right at the very

beginning. we should be using our special forces who are magnificent. i believe if the united states wanted to in six months it could take out isis completely. it is not like iran. long-term i consider iran the great threat to america. is sis is a threat that a good president with the military we have, could take out in six months. martha: we have report now that the gulf states, that saudi arabia, that jordan, u.a.e., qatar, they're considering taking action themselves in syria. they're frustrated we'll talk about this a little later they're frustrated with the u.s. response and what you just said reminded so much of president bush, when he said we need to get them over there so we lower chances hitting us over here. this is not something articulated by this president. that we need to get them over there so they do not come over here. >> when i gave speech at republican convention i will be

eternally grateful to president bush because days after september 11, and i was told get ready for a dozen attacks. president bush put us on defense. we used to be on defense. remember we didn't do anything after uss cole. whatever you think of president bush, this man kept us safe. those people who got hurt and died and injured they kept us safe by keeping war in iraq and afghanistan. when you're fighting in afghanistan and iraq, you can't be planning attacks on mall of america. martha: seven or eight arrests of people in new york city and boston area. >> you're gathering enormous intelligence when you do that. the lack of military presence means we're deprived of intelligence. this president opted for drone strikes that deprives us of even more intelligence. we're not with the people there listening to the gossip. we're not arresting the terrorists and questioning,

getting their information. martha: don't have our ear to the ground. >> we don't have the kind of information we had let's say six or seven years ago when we had 100,000 troops there. they gather a large amount of information. martha: our law enforcement has their hands here at home. rudy giuliani. >> we pray for a safe 4th of july. martha: absolutely we do. with you on that. thank you sir. bill: police have given all clear there in washington after lockdown of the u.s. navy yard. huge police response. a lot of confusion over past several hours after someone called in to report shots fired. we're back with the press statement. also the not so friendly skies, are they not so friendly? the feds are investigating whether or not whether the sky-high air fares are caused by fraud. >> this is a free market but the public has to travel and if there is a fixed price going on amongst the airlines it isanno nobody's best interest but the airlines.s. life reimagined gives you tools and support to get the career you'll

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martha: strange morning unfolding really in washington, d.c.p we're awaiting for an update from navy officials. the all-clear is given at navy yard in washington, d.c. we can tell you at 10:45 a.m. eastern time the head of police, chief lanier, will step in front of the microphones and explain a little more what we watched unfold this morning. we'll take you there live as soon as that gets underway. bill: mere time this story across the country. airlines looking uninvestigation looking at limiting available seating which would keep the price high for you as a passenger. judge andrew napolitano, fox news senior judicial analyst. good morning to you. >> good morning bill. bill: very early in this

process correct. >> very early. subpoenas went out this week. associated press got their hand on subpoenas and which started making phone calls and we learned the following. the justice department commence ad preliminary investigation among the five largest airline carriers in the united states to see if they did the following. this will sound a little weird. bill: go ahead. >> agreed among themselves not to expand not to buy bigger planes, not to buy more planes so as to keep prices up. bill: not to schedule more flights? >> correct, correct. if an individual airline decides not to expand, not to buy more planes that is a business judgment, there is nothing the government can do about that. but if this is decision made in tandem with competition, the effect of that is an upward push on prices and that is called price fixing. bill: that is all supply and demand. if there is greater demand and less supply the prices will go up. >> except under antitrust law supply and demand is determined

by investors and consumers not collaborators. bill: american airlines, united airlines delta air lines and southwest, correct. >> there may be one or two others that haven't admitted they got the letter. there may be one or two letters that got the letter from the justice department and are not targets. the justice department wants information from them. this is very difficult case to prove. it is not a criminal case. it's a civil case. it is a lawsuit against the airlines trying to get them to cough up money for the harm they caused or to restructure themselves as to enhance competition. bill: civil case not a criminal case? >> correct. bill: but if you prove this you have to prove a crime happened or some sort of collusion that would be defined as a crime? >> how do you prove that collusion? either with emails or documentary records, or somebody who once worked for one. airlines and now left and is willing to spill the beans. we're not talking crime. we're talking about influencing the marketplace so that consumers are harmed.

the penalty is three times the loss to consumers. it is a very very, very heavy financial penalty but no one so far is exposed to jail. bill: tough to prove though. >> 10 years in litigation. bill: really? >> unless a quick settlement. oh these cases -- bill: what is the last big collusion case you can rip off the top of your head. >> the microsoft case took 17 years. bill: they were found guilty or not guilty. >> they were and fined 10 billion. went through three different presidential administration with different attitude about it. this is the obama justice department at tail end of its existence handing a case to the justice department at the end of 2011. bill: thank you judge. >> pleasure bill. happy 4th of july. bill: and to you. martha. martha: we're waiting as we said to hear from officials at navy yard now that the all clear has

been given there. looks like the situation is moving on. a 911 call apparently about shots fired turned out to be a false alarm. officials are interviewing the caller as we speak. bill: donald trump is making headlines by the hour. he will not apologize on the controversial comments of illegal immigrants despite the backlash raising questions is trump helping or hurting the rest of the gop? we'll talk about that and his position about where he is in the polling in just one week's time. >> what i said is very simple. i mean i would love to say, you know, i will change it but i'm talking about illegal immigrants are pouring into into our country and with that comes tremendous crime. and i have said that. and other people have said it but the truth is, you have to be able, somebody is going to have to stick up for this country and say it.

bill: fox news alert now. it is 10:31, we expect 14 minutes from now we'll get a

news conference by the police in washington. police are giving the all-clear after a lockdown at navy yard. unconfirmed reports of gunfire. authorities interviewing the person that made the 911 call that happened at about 7:45 this morning we believe. so no injuries reported. no sign of a suspect and no word that shots were fired. the navy yard scene after deadly shooting rampage 2013, 22 months ago. a military contractor aaron alexis killed 12 workers before he was fatally shot by police. 13 dead in total that day. when it starts we'll bring you there live in washington. 10:32. martha: word of the latest environmental fine in u.s. history. leaders from four gulf states louisiana mississippi florida alabama, announced a huge settlement in this case. $18.7 billion and it stems from the 10 bp oil spill.

steve hair ga live in miami. what a story. what can you tell us here? >> reporter: martha, it is huge. the department of justice saying this is the largest payout settlement from a single entity in u.s. history. as far as numbers break down, alabama will get $2 billion, mississippi will get $2.2 billion, florida will get $3.25 billion and louisiana which bore the brunt of the damage from the oil spill in 2010 will get $6.8 billion. the four attorneys general had similar press conference this morning at 9:00 a.m. pam bondi attorney general of florida described bp a good corporate partner. they could have little gated this for next 30 years. instead of that they're paying out. bp will have paid out more than $40 billion for that spill five years ago martha. martha: wow what a story. when you look at this situation, steve, the biggest, the next biggest was the bank of america deal at $16 billion.

obviously these states will have to put this money to work, steve. >> reporter: certainly interesting too how florida managed to get $3.5 billion yet the state was untouched by the oil. it was really the perception that hurt tourism in florida. louisiana getting $6.8 billion and of course one the worst environmental tragedies in u.s. history. that oil, you remember, five years ago, really flowed out three million barrels of oil in the gulf. it flowed for 87 days before it was finally really the states fighting hard for their money getting more than $18 billion. bp deciding to settle now instead of litigating any further. some attorneys general are happy with the money they get to rehabilitate the coastline and businesses an tourism that hit hard over the past few years, martha. martha: what a disaster and mess that was. steve, thank you very much. bill? bill: donald trump making headlines doubling down on his comments about illegal immigrants even though nbc

dropped his miss usa pageant, macy's dumped his clothing line. what's the effect of the backlash we're wondering? doug schoen, former advisor to president clinton fox news contributor. monica crowley, online opinion editor for "washington times." welcome to you. boy making headlines. see he it reflected in polling. show that to you in a minute. first from greta last night. here is donald trump. >> you see it in the polls. people are backing me. somebody has to stick up for our country on trade. we're getting ripped off by china by mexico, by japan, by everybody. everybody that does business with us, so, honestly, like i don't think i could have been much more clear. bill: so here is the polling nationwide now. jeb bush at 15. walker 10 1/2. rubio, carson, huckabee, paul and donald trump at 6%. if you go to some of this individual state polling, monica you see in new hampshire he has gotten a bump.

you see in iowa he has gotten a bump. he is riding number two horse right now. >> listen, voters want a straight talker. is he brash and outspoken? absolutely. he is giving voice to what a lot of voters believe by the state of the country right now and fearlessly doing it. the question whether or not is good for the republican i think is immaterial because he is performing two great services for the rest of the candidates if they're smart enough to follow his lead. number one he is not caving into the leftist intimidation tactics right? going after univision. going after macy's and nb correspond and they all caved. statistics back me up on criminal element coming overboarder. i'm not apologizing. that is a big lesson for conservatives and republican goings forward. number two being this brash and outspoken could he say things in more graceful way? maybe. but guess what? he is doing a lot of political blocking for the other candidates. because he is saying things that need to be said and if other

candidates are smart they might wrap it up in more diplomatic language you about he is going out there, kind of as lead rabbit running around the field. bill: you're not bothered by this then. >> not at all. bill: doug. >> i'm thrilled. this is great news. you have 16 republican candidates. trump is using intel rat, impertinent language, analgizing mexicans to murders and rapists. take all the air out of the republican party. hillary clinton the democrats are just basically saying, pub, pub republican republican republican. this is manna from heaven. bill: you sympathy this is hurting. >> hurting republican party. he will not be the nominee. bill: what about macy's announcement. doesn't matter. get rid of my clothes. doesn't hurt me. >> that is why when he is doing for decades in the recent past engaged in mob-like tactics and

throw a switch, leftist army on the street like outside of macy's, trump equals hate speech. he is refusing to cave. i have facts an figures to prove what i say. prove that i'm wrong? that is the kind of strength the republican field need. you have others that do that. ted cruz pushes back and others. trump is -- >> that is good ticket, trump and cruz. that would be really good for hillary. bill: to her point, doug at some point does the backlash catch up with the backlash? >> you know, that may be a little past my pay grade, bill but are with i come from, when you're a democrat you want republicans fighting among themselves, using intel rat language and dominating debate with rhetoric about issues candidly not about the economy, not about jobs and not about getting america moving again. this is all great news for the democrats. couldn't be better. >> trump, the conversation about immigration got all the headlines but trump has been

talking about china, jobs an economy. bill: masterful marketer and interesting to watch. >> we'll see the political impact. bill: thank you dougie fresh. monica. martha: happy man. severe weather including two possible tornadoes ripping through missouri damaging buildings and vehicles near kansas city. watch this. >> whoo! oh, oh. >> i got it, man. check that out! just took whole building in front of us, yo. martha: watch that. oh my goodness. the storm ripped off roof tiles and snapped power lines as you see in this part of the video. thousand of people left without any power. debris spreading everywhere. no word, thankfully of any serious injuries in that situation. bill: 20 minutes before the hour. obama administration under fire from our allies in the gulf. is the u.s. blocking plans to send heavy weapons directly to

kurds willing to fight isis in iraq and syria. what our allies are planning next. martha: plus what went down in the washington navy yard. we are minutes away from a news conference as folks come to terms with a very confusing warning. we're looking for some answers. we hope we get them five minutes away. >> we heard someone shouting get out of the building. stay away from the cafeteria, everyone get out. we were nearest and office and from lessons learned from last time. we got in the office, shut the door, locked it. that was it until the policed i' arrived to escort us out. doctors... the brave resolve of loved ones... what i haven't heard... what a lot of us haven't heard nearly enough... ...is new news. over 430,000 americans are living with lung cancer today. in fact, every two and a half minutes another person is diagnosed. although there are known risk factors anyone can get lung cancer. and every case is different. but now patients could be hearing some unexpected news.

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bill: we expect it minutes away anyway. police will be at the bank of microphones to tell us what they know about the navy d.c. incident from earlier today. we're hearing 10:45. on the clock that is two minutes from now. if it happens we'll get you back there. meantime here is martha. martha: meantime our allies in the middle east accusing the obama administration of blocking

efforts to send heavy arms directly to the kurdish peshmerga to fight isis on the ground in iraq. "the daily telegraph" with this report saying quote they now say they are willing to quote go it alone in supplying heavy weapons to the occurs even defying iraqi authorities and american backers who demand all weapons must be channeled through baghdad. what is going on here? tom coughlin the defense editor of the "the daily telegraph" in london. welcome back to the program. good to have you here today. >> good morning martha. martha: so it appears they're getting pretty frustrated with the lack of action and lack of targets being called in and the isis is fighting with weapons left behind our own fighters on the ground in baghdad and they don't have very good stuff to fight with so they will try to do it themselves, right? >> that's right. it is a early mess, martha, that is really what this story shows. i've been talking to some fairly senior arab officials, military

officials, diplomats with the gulf states and other members of the coalition against islamic state and basically there is an enormous sense of frustration with the leadership of the coalition from president obama and furthermore, as my story says today, there is sort of anger almost at the obstruction the obama administration is placing in the way of their efforts to get an effective fighting force against islamic state. and when you look on the picture on the ground, it is the kurds in northern iraq who have proved to be by far the most effective fighting force. and so the arab states europeans want to provide the kurds with heavy weapons to support their efforts. this is, i'm told being blocked by the white house which basically doesn't want to arm the kurds because they're afraid of what that will do to turkey which of course is another player in this conflict. martha: turkey is not working

with us on this anyway. turkey wants us to take out assad. we won't do that. why would we be bending over backwards to curry favor to turkey when we're not really on the same page anyway? >> well that is a very good question, martha, one we would like the white house to answer but my understanding is that the obama administration is still hopeful that they can persuade the turks to come on board to police their border with joining islamic state in northern syria and take effective action to stop jihadists going backwards and forward. some of those jihad jihadists are coming from here in britain and other countries. the real priority, particularly here in britain where we just had 30 british people killed in that terrorist attack in tunisia last week, it looking that attack could have well been

planned in syria by islamic state commanders there. the top priority is to attack islamic state in syria. the kurds do that very well. say the obama administration is blocking attempts to do that. martha: you know and in libya, looks like they may have trained in eastern libya as well. so i have a big question for you, in terms. u.k. and where they stand. we know that the gulf states are frustrated there is no doubt. we know there is lack of commitment on the part of this white house to really try to take out isis. what about our good friends in the united kingdom? are they starting to separate from us on this as well? >> no, i think where we stand at the moment is we are still working very much with washington and following washington's lead. there are some of us in london like myself who are very frustrated with this and think perhaps david cameron should show some, demonstrate the kind of leadership that tony blair did so effectively during the past decade in iraq and

afghanistan. but for the moment david cameron seems to be tucked in behind president's slip stream and taking his lead from the white house. because of this recent terrorist atrocity in tunisia where we have 30 british dead i think that is changing the political climate here in london. today there has been a very sort of lively debate in the house of commons about whether britain should now take part in airstrikes against isil targets in syria, which until now we haven't done. martha: yeah. interesting piece. conn, thank you very much. good to speak with you today. >> pleasure, martha. >> we're awaiting this. what did the police find inside of the washington, d.c. navy yard. how did this all start three hours ago? we are waiting for answers as i know you folks are watching as well. back to that in a moment. quick commercial break. let's squeeze it in now.

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martha: we are just getting a report from the navy and it is making clear what has been the sense here for at least the past hour or so. it says at 7:29 a call was placed from a building inside of the washington navy yard reporting possible gunshots. navy yard officials called partner law enforcement agencies for assistance but they say all personnel are safe and accounted for and after sweeping that building, no signs of a shooter, no signs of a shooting. no signs of a victim, nothing at hey say the investigation will continue. they know they are speaking to the person that made that phone call and trying to find out what triggered that phone call. it was supposed to start at

10:45 but we'll look for that. bill. bill: became the face of sort for government waste. three years later a judge sentencing this former federal executive to jail. chief correspondent jonathan hunt live in our l.a. newsroom with more on this remind us what he did in last last, jonathan. >> reporter: bill, the face and the body of government waste when you take a look at that photo. who could forget jeffrey neely, so famously photographed in that said jacuzzi at a vegas resort drinking what looked like for all the world, california's finest cabernet. it was part of an $800,000 conference he organized for general services administration and other government agencies employees. those costs included a $7,000 sushi reception, $3200 for a mind reader, and a $130,000 spent on a preconference scouting trip. well he pleaded guilty to one

count of fraud against the government and yesterday was sentenced to three months in prison. in an email statement to the associated press mr. neely said, quote there will be a time and place for me to talk to the press about this. that time is not now. and that place will be determined. i'm guessing, bill, the time will be some three months from now when he gets out of prison. bill: wow. this story, it really changed the way government employees do business in a way. >> reporter: it really did. there was spotlight put on all kinds of government waste. in terms of the general services administration, some 11 managers involved in that conference were fired. eight employees suspended. eight others admonished reprimanded or warned. president obama of course appointed a new fsa chief who was tasked with reining in what was considered out of control travel and conference budgets. in the next four months about 50 conferences were canceled.

mr. neely will not, we can assume be working for the government again. as i say, bill, he has been sentenced to three months in prison and that will be followed by three months home detention. i'm very sorry to report, bill, i have not been able to discover whether mr. neely has a hot tub in his home. my apologies. bill: we're on standby for that. thank you, jonathan, in vegas. martha: as i said we're awaiting a news conference in washington. they have a lot of sorting out to do, what happened, any response and confirmation they had if there was need to respond to this kind of force in the d.c. area. it is interesting to note this is the third false alarm, one at the white house one at at capitol. now one at the navy yard, just in the course of the past month. is there anything to be read into that? not sure at this point but something to keep in mind as we look at this and think about the posture the united states is in right now as we head into the

4th of july weekend and lot of nervous people and a lot of people on edge as we do that based on what we've heard. we'll take a look at that we'll bring that to you live as soon as it gets underway.

>> you know we have watched a large exercise in emergency response playing out at the navy yard and looks to be the result of a phone call and a loud noise that resulted in a huge task force deploying in washington, d.c. they will start speaking any moment. we have been waiting for this and we don't know what the delay is but they will give us their story and explanation of what they saw unfolding. >> it has been a weird music. >> it has been. >> this is another sign of a nervous nation. stay safe america. as they say, enjoy the fourth of

july weekend. one of the big stories of the day is what happened in washington, d.c. earlier demanding more explanation. you are seeing our live shot of washington, d.c. where we expect a news conference to begin in a moment. the navy recapping for us what transpired this morning. around 7:30 there was a call made inside the navy yard of a possible gunshot and now no sign of shooter or victim or shooting. we see a group walking toward the microphone on the street there. perhaps these are the folks we have been waiting for. we will see. as the news conference begins in washington, d.c. we will bring you back there. but